DAVIS, Calif.--(EON: Enhanced Online News)--Arcadia Biosciences, Inc. (Nasdaq: RKDA), an agricultural technology
company that creates value for farmers while benefitting the environment
and enhancing human health, today released its financial and business
results for the second quarter and first half of 2017.

Revenues for the quarter were up 37 percent to $991,000, compared to
$721,000 for the second quarter of 2016. The increase reflects higher
product sales as well as higher contract and grant revenue, primarily
the result of a new agreement. Operating expenses for the second quarter
were $4.7 million compared to $5.0 million for the same period in the
prior year.

The company’s net loss and net loss attributable to common stockholders
in the second quarter of 2017 was $4.0 million, compared to $4.6 million
in the comparable period in 2016.

For the first half of 2017, net loss attributable to common stockholders
was $8.2 million, an improvement of 16 percent over the comparable
period loss of $9.7 million in 2016. Cash on hand and liquid investments
at the end of the second quarter totaled $44.1 million.

“Our positive momentum from the first quarter continued in the second
quarter with increased revenue, decreased operating costs and a reduced
net loss,” said Raj Ketkar, president and CEO of Arcadia. “Together with
our global partners, we continue to advance the key products from our
yield trait and food ingredient platforms toward commercialization.”

Business and Technology Highlights

Arcadia made the following business and technical achievements during
the second quarter of 2017:

SONOVA GLA Safflower Oil Approved For Use in Dog
Food. After completing its review of Arcadia’s food additive
petition, the FDA concluded that the data supports the safety and
functionality of GLA safflower oil as a source of omega-6 fatty acids
in dry food for adult dogs. The petition will be approved when the
final rule is published in the Federal Register. This approval opens
up an expanded opportunity for use of SONOVA GLA safflower oil in pet
nutrition and demonstrates Arcadia’s strong regulatory capabilities
and commitment toward creating the greatest possible value for our
entire product portfolio.

Eric J. Rey and Gregory D. Waller Join Arcadia
Biosciences Board Of Directors. Eric J. Rey and Gregory D.
Waller were elected at the company’s annual stockholders meeting to
replace directors Vic Knauf, Ph.D., and Rajiv Shah, M.D. Additionally,
the board of directors formally elected George F.J. Gosbee as its
chair. Gosbee had served as interim chair of the board since November
2016.

Since the close of the second quarter, Arcadia has also announced the
following achievements:

HB4 Stress-Tolerant Soybeans Complete U.S. FDA
Safety Review. Through Verdeca, a joint venture with Bioceres,
Arcadia completed the FDA safety review for HB4 stress-tolerant
soybeans. This allows products derived from the trait to be used
commercially in human food and animal feed. This is a major milestone
in the development of this trait, which aims to create significant
value for soybean growers by bringing yield stability to areas that
experience chronic water stress problems.

Arcadia’s Water Use Efficiency Trait Completes
US Food and Drug Administration Early Food Safety Evaluation (EFSE).
The FDA’s EFSE concluded that the functional protein for the WUE
trait, isopentenyl transferase (IPT), is safe for humans and animals
and would not raise food safety concerns if present in the food
supply. This approval is an assurance of safety for WUE crops
currently under development and being tested in the field and will
expedite the regulatory approvals for this trait. Greenhouse and field
trials of the WUE trait have been completed in agronomic crops such as
rice, wheat, cotton, peanuts and alfalfa, and Arcadia is currently
working with collaborators in rice, potato, sugarcane, cotton and
multiple tree species.

Amy Yoder Joins Arcadia Biosciences Board of
Directors. Yoder is president and CEO of Anuvia Plant Nutrients
and the former president and CEO of Arysta LifeScience. She received a
bachelor’s degree in agricultural technology and systems management
from Michigan State University, with an emphasis in crop and soil
science.

Arcadia Biosciences, Inc.

Financial Snapshot

(Unaudited)

($ in thousands)

Three months ended June 30

Six months ended June 30

Favorable/

Favorable/

2017

2016

(Unfavorable)

2017

2016

(Unfavorable)

$

%

$

%

Total Revenues

991

721

270

37%

2,009

1,573

436

28%

Total Operating Expenses

4,728

5,010

282

6%

9,709

10,795

1,086

10%

Loss From Operations

(3,737)

(4,289)

552

13%

(7,700)

(9,222)

1,522

17%

Net Loss and Net Loss Attributable to Common Stockholders

(4,006)

(4,551)

545

12%

(8,222)

(9,741)

1,519

16%

Revenues

In the second quarter of 2017, revenues were $991,000 compared to
revenues of $721,000 in the second quarter of 2016, a 37 percent
improvement. The quarter-over-quarter increase was driven by increased
product sales and additional revenue from a new contract research
agreement in 2017. In the first half of 2017, overall revenues increased
to $2.0 million from $1.6 million primarily as a result of the new
contract research agreement.

Operating Expenses

In the second quarter of 2017, operating expenses totaled $4.7 million,
down from $5.0 million in the first quarter of 2016, a decrease of
$282,000 or 6 percent. For the first half of 2017, operating expenses
were $9.7 million, compared with $10.8 million during the same period in
2016. Cost of product revenues increased by $40,000 as a result of
higher sales when comparing the respective six-month periods. Research
and development (R&D) spending decreased by $926,000 and general and
administrative (SG&A) expenses decreased by $200,000. Both expense
categories had decreases driven primarily by lower salaries and
benefits, mainly the result of workforce reductions made during 2016.

Net Loss and Net Loss Attributable to Common Stockholders

Net loss and net loss attributable to common stockholders for the second
quarter of 2017 was $4.0 million, or a loss of $0.09 per share, a 12
percent improvement from the $4.6 million loss in the second quarter of
2016. Net loss and net loss attributable to common stockholders for the
first half of 2017 was $8.2 million, compared to $9.7 million for the
first half of 2016.

Liquidity

Following the close of the second quarter, in July 2017, the Company
repaid its outstanding term loan with Silicon Valley Bank, including the
principal balance of $25.0 million, interest of $148,000, an early
prepayment fee of $500,000 and an end-of-term payment fee of $625,000.
Due to the early termination of the facility, management estimates the
company will save a total of $2.0 million in cash interest payments over
the remaining term of the original facility.

Conference Call and Webcast

The company has scheduled a conference call for 4:30 p.m. Eastern (1:30
p.m. Pacific) today, August 10, to discuss second-quarter financial
results and key strategic achievements.

Interested participants can join the conference call using the following
numbers:

U.S. Toll-Free Dial-In:

+1-844-243-4690

International Dial-In:

+1-225-283-0138

Passcode:

58692729

A live webcast of the conference call will be available on the
“Investors” section of the Arcadia website at www.arcadiabio.com.
Following completion of the call, a recorded replay will be available on
the company’s investor website.

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform
Act of 1995: This press release and the accompanying conference call
contain forward-looking statements about the company and its products,
including statements relating to components of the company’s long-term
financial success; the company’s traits, commercial products, and
collaborations; and the company’s ability to manage the regulatory
processes for its traits and commercial products. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially, and reported results should not be
considered as an indication of future performance. These risks and
uncertainties include, but are not limited to: the company’s and its
partners’ ability to develop commercial products incorporating its
traits and to complete the regulatory review process for such products;
the company’s compliance with laws and regulations that impact the
company’s business, and changes to such laws and regulations; and the
company’s future capital requirements and ability to satisfy its capital
needs. Further information regarding these and other factors that could
affect the company’s financial results is included in filings the
company makes with the Securities and Exchange Commission from time to
time, including the section entitled “Risk Factors” in the company's
Annual Report on Form 10-K for the year ended December 31, 2016. These
documents are on the SEC Filings section of the “Investors” section of
the company’s website at www.arcadiabio.com.
All information provided in this release and in the attachments is as of
the date hereof, and Arcadia Biosciences, Inc. undertakes no duty to
update this information.

About Arcadia Biosciences, Inc.

Based in Davis, Calif., Arcadia Biosciences (Nasdaq: RKDA) develops
agricultural products that create added value for farmers while
benefitting the environment and enhancing human health. Arcadia’s
agronomic performance traits, including Nitrogen Use Efficiency, Water
Use Efficiency, Salinity Tolerance, Heat Tolerance and Herbicide
Tolerance, are all aimed at making agricultural production more
economically efficient and environmentally sound. Arcadia’s nutrition
traits and products are aimed at creating healthier ingredients and
whole foods with lower production costs. For more information, visit www.arcadiabio.com.

Arcadia Biosciences, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

June 30,

December 31,

2017

2016

Assets

Current assets:

Cash and cash equivalents

$

13,438

$

2,013

Short-term investments

30,740

48,547

Accounts receivable

432

349

Unbilled revenue

141

184

Inventories — current

286

252

Prepaid expenses and other current assets

1,480

877

Total current assets

46,517

52,222

Property and equipment, net

417

508

Inventories — noncurrent

1,153

1,327

Long-term investments

—

2,498

Other noncurrent assets

346

19

Total assets

$

48,433

$

56,574

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable and accrued expenses

$

1,834

$

2,359

Amounts due to related parties

27

30

Notes payable — current

4,167

—

Unearned revenue — current

666

740

Total current liabilities

6,694

3,129

Notes payable — noncurrent

21,058

25,127

Unearned revenue — noncurrent

2,920

3,120

Other noncurrent liabilities

3,000

3,000

Total liabilities

33,672

34,376

Stockholders’ equity:

Common stock, $0.001 par value—150,000,000 and 400,000,000shares
authorized as of June 30, 2017 and December 31, 2016;42,664,821
and 44,487,678 shares issued and outstanding as ofJune 30,
2017 and December 31, 2016

Contacts

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